Does this agreement breach Australian Consumer Law or state strata laws?
From 9 November 2023, amendments to the Australian Consumer Law expanded the scope of what constitutes an unfair contract term and introduced significant penalties for breaches. We are not lawyers by trade, but we asked our friends at Bannermans Lawyers to weigh in and give us guidance.
HERE'S WHAT YOU NEED TO KNOW!
1. What Makes a Term Unfair?
A contract term may now be considered unfair if it:
Causes a significant imbalance in the rights and obligations of the parties.
Is not reasonably necessary to protect legitimate business interests.
Causes detriment (financial or otherwise) to the other party.
2. Examples of Unfair Terms
Terms allowing one party to terminate a contract but not the other.
Terms granting one party the ability to renew or decline renewal, excluding the other.
Terms requiring owners to pay for their own property upon contract termination, when such terms function as a penalty.
These changes affect all businesses and consumers under Australian law. Ensure your contracts are compliant to avoid penalties and predatory pricing.
Conduct a site-specific and contract-specific review. Then, raise concerns directly with your current provider. With expert help, you might just unlock a better deal or negotiate a clean break.
Feeling stuck? Let us help you navigate this. Contact Embedded Network Arena today for proven strategies that work!
The Embedded Network Arena are an independent consultancy firm, and we operate for the benefit of our clients. Our parent company, ARENA Energy Consulting, is a signatory to the Energy Charter’s National Customer Code and we were appointed as a founding Council Member in December 2020. Additionally, we are proud to support the Strata Community Association and the Owners Corporation Network of Australia.
We operate under a ‘fee-for-service’ advice model, which means that we do not receive brokerage commissions from suppliers. This ensures our independence is guaranteed.
